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Accounting and Financial Reporting 11 11 Accounting and Financial Reporting Author Note Introduction

   

Added on  2021-06-18

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Running head: ACCOUNTING AND FINANCIAL REPORTINGAccounting and Financial ReportingName of the Student:Name of the University:Author Note
Accounting and Financial Reporting 11 11 Accounting and Financial Reporting Author Note Introduction_1

ACCOUNTING AND FINANCIAL REPORTING1Table of ContentsIntroduction......................................................................................................................................2Part A...............................................................................................................................................2Part B...............................................................................................................................................4Part C...............................................................................................................................................6Conclusion.......................................................................................................................................9References......................................................................................................................................10
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ACCOUNTING AND FINANCIAL REPORTING2IntroductionThe issue that has been presented in the question refers to the fact that the financialstatements of a corporate entity are the most important documents that belong to a corporateentity. This means that the financial documents that are prepared by an organization state thefinancial particulars of the business entity. The financial documents that belong to a corporateentity include the financial statements like the cash flow statement, statement of financialposition and the comprehensive income statement. The financial documents indicate theaccounting position of the corporate entity. The financial statements not only are effective for themanagement of the company but also the third party investors of the company. The managementof the corporate entity utilizes the accounting statements of the company for the purpose offinding out the loopholes of the essential business operations. Moreover, the specific areas thatrequire immediate attention by the administration of the company or else will result in aparticular loss is easily identified with the help of the accounting report that is published by theparticular corporate entity. It should be noted here that the third party investors also are able toacquire the required business information from the financial statements of the corporate entities(Ali, Akbar & Ormrod 2016). This particular study aims to find out the particulars of the format in which the financialstatements have been prepared and the accounting guidelines that have been followed for thepreparation of the financial statements in the corporate entities. Moreover, the significance of theissuing of the standards have also been revealed in this particular study. Part AThe issue that has been presented in the case study refers to the significance of thefinancial statements that are prepared by the administration of the corporate entities. Thefinancial statements consist of the essential accounting information that is required by the thirdparty investors as well as the very own management of the corporate entity. Therefore, it can beunderstood that the accounting report of a corporate organization is of utter importance andshould be prepared accordingly (Ali, Akbar & Ormrod 2016). The first point that has been mentioned in the case study refers to the fact that thefinancial reports should contain the information that have already occurred or will occur in the
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ACCOUNTING AND FINANCIAL REPORTING3near future. This means that the financial statements that have been prepared should be carriedout in such a way that they represent the fair image of the company. It must be noted here that itis the primary duty of the financial report preparers to prepare the financial report in such a waythat they convey a sense of clarity and conciseness on the part of the users of the financialstatements. This can be further explained with the help of the particular accounting standard ofAASB 101. This particular standards that has been established by the Australian AccountingStandards Board. This particular accounting standard defines the purpose of the financialstatements or the particular reasons for which the financial statements are prepared by thecorporate entity. The accounting statements reflect an organized representation in regards to thefinancial performance or position of a corporate entity. The objective of the financial statementsis to facilitate the providence of the financial information in regards to the financial particularslike the financial position, performance and the cash flows that are required by the third partyinvestors for the purpose of making the economic decisions. The financial statements that havebeen prepared reflect the results of the stewardship of the management in regards to theresources that have been entrusted to it. In addition to this, it has been mentioned in the particularaccounting standard of AASB 101 that the accounting reports in order to meet its objectivesshould provide the required information in regards to the assets, liabilities, equity, expenses andincome, cash flows and contributions by the owner of the corporate firm (Ali, Akbar & Ormrod2016). It has been further mentioned in the accounting report of the corporate organization thatthe accounting statements that are prepared by the management of the corporate entity should notinclude any kind of financial components that have not been incurred in reality. Moreover, thefinancial components should not be fictitious in nature. The particular formulas that have beenutilized for the purpose of preparation of the financial statements should also be clearlymentioned in the accounting report of the organization. Moreover, the accounting statementsshould be prepared in accordance to the proper arithmetic rules. This has been further explainedin the Australian Accounting Standard 101. The financial statements that have been preparedexplain the aspect that the financial statements have been prepared on the basis of the financialperformance and the cash flows of a business entity. It has been further mentioned in theaccounting statements of the financial organization that the fair presentation of the accountingstatements of a corporate entity require the faithful representation in regards to the effects of the
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